Which of the following contributed to the crisis of 2008?
A) a doubling of the price of imported oil during 2007-2008
B) a sharp increase in the price of housing during 2008
C) inclement weather in 2008
D) falling resource prices and a reduction in the cost of production

Question

Quizplus · Accepted Answer

The doubling of the price of imported oil during 2007-2008 contributed to the crisis of 2008 by increasing inflation and causing a decline in consumer spending, as individuals had to spend more money on fuel and less on other goods and services. The resulting economic slowdown and decline in demand led to widespread defaults on mortgages, which in turn triggered the financial crisis. Choices B, C, and D are not correct, as they have little or no direct relevance to the crisis of 2008.

Which of the Following Contributed to the Crisis of 2008